This article attempted rethinking and illumination of human capital theory to emphasize key impetus means for societal development in knowledge-based society. Human capital is generally defined as a stock of economically productive human capabilities....
This article attempted rethinking and illumination of human capital theory to emphasize key impetus means for societal development in knowledge-based society. Human capital is generally defined as a stock of economically productive human capabilities. These capabilities are formed or produced by combining innate abilities with investment in human beings. Examples of such an investment include expenditure on education, on the job training, migration, health and nutrition. Human capital theory view education as a form of investment producing future benefits in the form of higher income to both individuals and society. This theory claims that education increases human capital-in the form of knowledge and skills-in the same way that investment in new machinery raises the productive capacity of the stock of physical capital.